FAQ

How Much Does It Cost to Build Custom Software With AI in 2026?

AI Economics

Key Takeaways
  • According to Clutch.co's custom software development cost survey, a mid-market US firm typically charges $150K-$300K for a single production system, with timelines of 6-12 months.
  • Stealth Labz built 596,903 lines of production code across 10 deployed systems for $67,895 total.
  • The most important finding is not the total cost -- it is the cost trajectory.

Custom software built with AI-assisted development costs $65,000-$68,000 for a full production portfolio of 10 systems spanning 7 verticals, based on audited data from a 116-day build cycle. That is 12x-43x less than the $795K-$2.9M a traditional mid-market firm would charge for equivalent output.

How Traditional Pricing Compares

According to Clutch.co's custom software development cost survey, a mid-market US firm typically charges $150K-$300K for a single production system, with timelines of 6-12 months. A multi-system portfolio like the one described above would require 4-6 developers, a project manager, and QA staff, pushing costs into the $960K-$1.44M range for internal teams or $795K-$2.9M through outsourcing. Those estimates assume 12-24 months of development time.

What AI-Assisted Development Actually Cost (Audited)

Stealth Labz built 596,903 lines of production code across 10 deployed systems for $67,895 total. That breaks down as follows:

Category Amount % of Total
CON-02 (primary dev contractor) $40,700 59.9%
CON-03 (secondary contractor) $21,854 32.2%
Initial website build $2,500 3.7%
AI tools (Anthropic, OpenAI) $2,634 3.9%
Other software $207 0.3%
Total $67,895

No investors. No venture capital. No equity sold. One operator using the Compounding Execution Model (CEM) with AI tools.

Why the Cost Keeps Falling

The most important finding is not the total cost -- it is the cost trajectory. Each new system cost less than the last because reusable infrastructure compounded across projects:

  • 1st product: $7,995 external support cost
  • 4th product: $1,680
  • 8th product: $90
  • 9th product: $0

By January 2026, a new production system in a new vertical shipped in 5 days at zero external cost. Monthly burn dropped from $8,367 at peak to $825 -- a 90% reduction in 4 months. The marginal cost of launching a new product converged to the operator's time plus ~$105/month in AI tooling.

For decision-makers evaluating AI development costs: the question is not what the first build costs. It is what the fifth, eighth, and tenth builds cost once the foundation compounds.


Related: [FAQ #68 — ROI of AI-Assisted Development]

References

  1. Clutch.co (2025). "Custom Software Development Cost Survey." Agency pricing and project cost data.
  2. Keating, M.G. (2026). "Case Study: The Cost Inversion." Stealth Labz. Read case study